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sagaftra.org | Winter 2021 | SAG-AFTRA 91 T he life of an actor can be rewarding, but it can also be a challenging one, even in the best of times — and these have definitely not been the best of times. With a pandemic that has significantly curtailed production and work opportunities, just making ends meet can be one of the most pressing issues for performers. And when it comes to managing finances, actors are a unique breed. "Artists in particular have a different set of requirements than … people who have a 9-to-5 job," said David Maurice Sharp, a financial literacy educator and author of The Thriving Artist. "The nature of our lives is to have sporadic income. "A lot of financial information that's out there doesn't really apply to the situation that we're in," he said. "The information out there is good, but it isn't geared toward our lifestyle." COST OF LIVING Actors often experience bursts of employment, and it can be easy to overspend when the money is coming in, leaving the situation desperate during the dry spells. Experts offer some simple strategies to even out the feast-or-famine cycle. First, take stock of your expenses to determine your cost of living. Determine your average monthly costs for housing, utilities, credit card payments, groceries, transportation, insurance premiums, entertainment, investment contributions and any other expenses. Sharp calls this your "monthly nut." You can start by looking at the past few months — at least three, but the more data you include, the more accurate your numbers will be. Be cognizant of any changes in your life that could affect the totals, such as a recent move to a new place of residence. In that case, be sure to use the newer data. Once you know how much money you need to get by, set up your finances so that all the money you earn goes into an account, and that account issues you a check each month in the amount of your "monthly nut." It doesn't have to be an actual check, or course; you can simply transfer the money from your savings to of requirements than … people who have a 9-to-5 job," said David Maurice Sharp, a financial literacy educator and author of The Thriving Artist. "The nature of our lives The Thriving Artist. "The nature of our lives The Thriving Artist is to have sporadic income. "A lot of financial information that's out there doesn't really apply to the situation that we're in," he said. "The information out there is good, but it isn't geared toward our lifestyle." COST OF LIVING Actors often experience bursts of employment, and it can be easy to overspend when the money is coming in, leaving the situation desperate during the dry spells. Experts offer some simple strategies to even out the feast-or-famine cycle. First, take stock of your expenses to determine your cost of living. Determine your average monthly costs for housing, utilities, credit card payments, groceries, transportation, insurance premiums, entertainment, investment contributions and any other expenses. Sharp calls this your "monthly nut." You can start by looking at the past few months — at least three, but the more data you include, the more accurate your numbers will be. Be cognizant of any changes in your life that could affect the totals, such as a recent move to a new place of residence. In that case, be sure to use the newer data. Once you know how much money you need to get by, set up your finances so that all the money you earn goes into an account, and that account issues you a check each month in the amount of your "monthly nut." It doesn't have to be an actual check, or course; you can simply transfer the money from your savings to your "spendable" account. In the months when work is plentiful, your reserves grow, and when times are lean, you draw from that reservoir. This provides you with a more regular income and helps to prevent overspending. The next step is to track your ongoing expenses as you pay bills and spend money. Knowing where all your money is going is the bedrock of any financial planning, and it lets you see if your monthly expenses are changing. There are numerous apps that can help with that, such as Mint, which is available for iOS and Android, or you can use a spreadsheet, notebook or whatever works for you. HOPE AND FEAR Money management can include an emotional component, and it's easy to be hard on yourself and feel like you're not where you should be, but it's important to be honest and gain absolute clarity of your financial situation, said Miata Edoga, president and founder of Abundance Bound, a financial education company for actors, artists and creative professionals. "Otherwise [you] will be driven by fear, anxiety, upset, all of which are massively understandable and expected emotions," she said. "We can either be ruled by emotion, or we can be ruled by clarity. "This is an incredibly difficult time, and it's really important that everybody try to approach the area of finances with as much compassion for themselves as possible," she said. To achieve clarity, Edoga recommends that actors honestly assess how much money their acting is likely to generate in 2021. If there's a gap between what you anticipate earning and your cost of living, it may be time to get creative on how to bring in supplemental income. A lot of side jobs some actors have relied upon historically, such as those in the service, retail, and food and beverage industries, have been severely impacted by the COVID-19 crisis, and may not return to pre-pandemic levels for the foreseeable future. Edoga works with clients who have used the pandemic downturn to learn to code websites or have utilized their administrative skills to serve small "This time may encourage [or] force many to truly decide: How do I stay in this industry for my lifetime by creating a stronger way of earning? It means we stop living our lives big break to big break … and we start building a sustainable and lasting career." — Miata Edoga Find Out More Organizations that support members often host presentations from financial experts like those quoted in this article. Check the websites of SAG-AFTRA, the SAG-AFTRA Foundation, The Actors Fund, and the Motion Picture and Television Fund to find out about upcoming workshops. You can also subscribe to the union's YouTube channel at youtube.com/sagaftra to see past PTEOE webinars on taxes and other financial matters.